Calculation method for the determination of the unit costs of fabrics woven in semi-automatic looms in small-sized enterprises

Abstract

The most basic way of maximizing the profit in small-sized weaving enterprises, which manufacture in a highly competitive environment in textile industry, is to reduce the costs provided that the product manufacturing quality is kept stable. However, as most of the small-sized enterprises in the industry have a workshop-type manufacturing structure on a per order basis, the cost calculation processes are usually conducted based on professional experiences without a specific method. This complicates the cost control and profit maximization in small-sized weaving enterprises. Within this study, the objective was to raise awareness on the significance of proper cost calculation in small-sized weaving enterprises and to propose a basic calculation method for the calculation of unit costs. In addition, the cost calculation method, which was developed considering the requirements of the enterprises within the region, was applied in calculation of the unit costs of “peshtemal” and “scarf” items, which are the most popular woven products in the small-sized weaving enterprises in the region.